Stop giving tax breaks to firms that ship jobs overseas: Obama

President Barack Obama on Saturday made it clear that he will not relent on stopping tax breaks to American companies that ship jobs abroad and said incentives will be given to those firms which create jobs in the country.
"Let's stop giving tax breaks to companies that are shipping jobs o

President Barack Obama on Saturday made it clear that he will not relent on stopping tax breaks to American companies that ship jobs abroad and said incentives will be given to those firms which create jobs in the country.

"Let's stop giving tax breaks to companies that are shipping jobs overseas. Let's stop incentivizing that and let's give tax breaks to companies that are investing right here in the United States of America," Obama said in response to a question at his White House news conference on Saturday.

His remarks came close on the heels of the Ohio state Governor passing an executive order to ban outsourcing, a development that has raised concerns in India which is often described as the world's back office.

Obama said instead of tax breaks that encourage corporations to create jobs overseas, he was for tax breaks for companies that create jobs in the country.

"Instead of tax breaks that encourage corporations to create jobs overseas, we believe in tax breaks for companies that create jobs right here in the United States of America.

And so we've begun to do that," Obama said.

"We believe in investments that will make America more competitive in the global economy -- investments in education and clean energy, in research and technology -- and we're making those investments," he said.

The Indian IT sector, which gets 60 per cent of its export revenue from the US, has come out strongly against US moves to ban outsourcing.

New Delhi's concerns on outsourcing and the steep hike in H-1B and L1 visa fees is expected to be raised during Obama's maiden visit to India in November.

This is the second time in a week that Obama has spoken about outsourcing.

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